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Hello;
Companies generally use following methots to ensure regulatory compliance to existing or updated regulations. Some of them merged their risk management system with compliance system. (see also ISO 19600)
- Compliance Matrix and scorecards
- Threat Analysis Tools (TARA, PTA etc.)
- Impact Assesments
General Process
1. Define contex, processes, regulations, clauses etc.
2. Analyse neccessties, shortages, gaps.
3. Plan neccessery actions, apply, control effectiveness
4. Schedule, update, recontrol, repeat.
General PDCA will work for these types of processes, its also really common use regulatory compliance softwares and law trace agencies.
Bests
Well!!, I agree that there is lots of changes going on Gulf countries but to success our business we need to be full compliant with Governance rules.
in that case, we need to change our strategy of doing business.there is lots of risk factor involve and we have to make a clear path for the same.
I hope it clears your question.
Companies have sturctures and models to manage risks,like TARA,coso and PESTLE analysis.
Risk management is continuous process and embedded in culture,not taken as separate exercise.
company’s risk committee regularly identify ,assess ,plan and monitor risks.
If companies operating in changing enviroment like in gulf then committee role is more active due to changes.
TARA model is used for once risks are identified and assessed.
We cannt eleminate all risks and some effects every body.
Changing enviroment doesn’t always have negative effects,risks have positve effects too.
Some companies and investors operate well in risky enviroments like warren buffett.
In changing enviroment the role of risk committee is very improtant because risks that were previously accepted,
Now due to change company will change its policy to aviod risk and vice versa.
Handling risks in changing enviroment is normal process for Risk committee.
Thank you for the invitation.
The Gulf today, is a very different state. It reflects changes in the law and culture of the people.
In addition regulatory changes such as the implementation of International Financial Reporting Standards (IFRS 9) that has come with far-reaching changes in many areas such as financial reporting, risk management, capital management, regulatory reporting, data sourcing and collection, governance.
Within the Gulf. Amid these changes, questions of national identity are hotly debated. There has been far less change when it comes to the structures and institutions governing domestic politics. But political change is occurring, often informally or under the surface. Existing systems of governance.
Given the recent government initiatives in the UAE to develop anti-bribery and corruption legislation, and the proposed changes in foreign company ownership, the important principle of improving things before they go wrong can be clearly seen as an effective response.
It has become clear to me that corporate governance practice in the UAE is a very live issue, seen as being fundamental to how business is done in the region even though the way that corporate governance is implemented has many unique characteristics. This is also true for more developed states; there is a major difference between the rules-based guidance of the US and its Sarbanes Oxley Act and the principles-based guidance of the UK. Yet both are generally accepted as appropriate for their context as they reflect each state’s corporate culture.
here are five actions that managers and owners can take now to ensure they meet the new legal targets.
• Firstly, protect your reputation: It is the most important asset you have. In the West, trust in banks has been almost irretrievably lost through self-serving actions, excessive risk-taking and lack of accountability. The reputation for honesty and integrity that the UAE has built up over many years did not happen by accident, but neither is it sustainable if it is not placed as the highest priority of every enterprise, of any size.
• Develop an effective corporate governance culture: It can be difficult to change traditional corporate culture, especially when there is a strong family dynamic. Nobody likes to admit to shortcomings, or to place the operations of a company in the public eye if there is a risk of highlighting failure or errors. But accepting that lessons can be learned and that examples of best practice often come hand in hand with mistakes is among the most positive decisions senior managers can make.
• Ensure compliance with the spirit of corporate governance codes, not just the letter: The Corporate Governance Code for Small and Medium Enterprises of 2011 is among the best-in-class and, in the research and publications of Hawkamah, the UAE has one of the most valuable corporate governance assets in the world. Of course there are other codes and guidance publications that address other regions, so if your business trades internationally, you can assess the effectiveness of your trading partners’ compliance with their own codes and thereby ensure that you share the best practices from both your codes.
• Be a proactive investor, or encourage your owners to be: Even in family-owned businesses, there is the opportunity to encourage the core principles of corporate governance. Seek advice from specialist investor groups, or from experienced owners. Similarly, management can ensure that the flow of information to owners and investors is adequate for them to continue to be confident of your governance culture.
• Finally, build on the long traditions of socially responsible business in the region: The Middle East has a long and admirable tradition of corporate responsibility. Apart from the satisfaction to be gained from doing the right things, it is well-known that employees who believe that their organisation carries out its dealings honestly and responsibly are much more likely to act honestly and with integrity than those who see their employers as acting in an unprincipled way.
These five steps alone will not free an enterprise from the risks of corruption; neither will they be a novelty to the best managed company. Using the proposed changes to the law though, gives a valuable opportunity to ensure that your reputation endures.
Mitigating against a risk is probably the most commonlymitigation of risk used risk management technique. It’s also the easiest to understand and the easiest to implement. What mitigation means is that you limit the impact of a risk, so that if it does occur, the problem it creates is smaller and easier to fix. And then,Acceptance, avoidance, transference and mitigation are great to use when the risk has a negative impact on the project. But what if the risk has a positive impact? In those cases, we want to maximize the chance that the risk happens, not stop it from happening or transfer the benefit to someone else!
Risk management is a continuous process developed and controlled by organization management so, for more attention to the risk mangement activities , the comapny should establish a separate risk management department as an operational department , it's major objectives foucs on how to define , assess , monitor and control risks with in an organization and how they can add more value thru suggested risk responses.
Risk managment subject is very very important in now a days business. in general people think the risk management is only relates to cash or funds, but in general risk managment involve different things, as such losing experience human resource,the competent staff in terms of their remuneration and not paying attention to their requirements. Expereince staff is a big asset to any organization and it should be consider as it is like we are considering cash risk while extending credit to new or exisiting customers and entering into new project.
To ensure regulatory compliance to existing or updated regulations. Some of them merged their risk management system with compliance system. (see also ISO 19600) - Compliance Matrix and scorecards - Threat Analysis Tools (TARA, PTA etc.) - Impact Assesments
company's risk committee should identify, analysis, plan and monitor risks regularly.each company has unique model to manage the risks. according to the situation we need to change the strategies.
When you live in the gulf you will understand how the tone at the top works, so visualizing the next steps and complying with rules and regulations will mitigate the risks or avoiding it from the first place.
